Over 100 cargo ships waiting to be loaded in Argentina

As a result of the strike by grain inspectors and oil sector workers in Argentina, already in its second week, the country’s exports are frozen and more than 100 cargo ships are facing delays to load agricultural products in Argentina.

Argentina is the largest exporter of soybean meal. Negotiations between workers and export companies on wage issues have been halted, with both sides accusing the other of intransigence. “The strike continues without any expectation that negotiations will resume in the short term. We have more than 100 ships waiting to be loaded,” says Gustavo Idigoras, head of the CIARA-CEC export chamber in Argentina.

The strike began on December 9 with a call from the Argentinean federation of oil industry workers and with participation from the URGARA union, which represents the port’s grain inspectors, and SOEA, representing workers in soybean crushers, based in the main Argentine grain hub, Rosario, from where around 80% of the agricultural exports from Argentina are shipped.

“There is a large participation of our members in the strike and, every time the companies speak out, this generates more anger and much more support from the population,” said URGARA spokesman Juan Carlos Peralta.

URGARA negotiates with the Chamber of Private Commercial Ports, or CPPC, while the federation and SOEA negotiate with CIARA. Peralta said that Urgara has closed individual agreements with some exporting companies, but that there are big differences in negotiating positions and that a comprehensive agreement is a long way off.

With soybeans and corn, Argentina’s two main commercial crops, currently being planted, December is not the peak of exports.

Farmers have held back all the inventory they can this year, expecting a further devaluation of the peso against the dollar before selling. The currency has weakened 27.9% this year to 83.15 pesos per dollar.

Source: Reuters

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